As Sensex / NIFTY jump in trade, brokerages have upgraded targets for 2020. See their Top Picks
Benchmark Indian indices Sensex and Nifty indices continues their dream run on Monday after the "Budget" like announcement from FM Nirmala Sitharaman on reduction in tax rate.
At 12 pm, Sensex rose to 39295 or 2.25% and NIFTY was
up at 11542 or 2.38%
Brokerages have now upgraded their outlook on Indian
equities and raised price targets significantly.
Let’s see what targets these brokerages are assigning
to Indices. Also check their favorite stock pics
"We believe the step has significant positive
implications for corporates’ profitability, broader economy and market
valuations. We expect the strong monetary stimulus in the near-term to result
in a cyclical recovery followed by investment/exports-led growth in the medium
term," said Nomura Research in a note to its investors.
Nomura has upgraded their Nifty target for March 2020
to 12545 It's has picked, ICICI Bank, Axis Bank, Larsen & Toubro Ltd,
Container Corporation of India, Dr Reddy's Laboratories Ltd, and ICICI
Prudential Life Insurance Co Ltd as ‘Buy’
Credit Suisse in its note said, cut in the corporate
tax rate is aimed to make India globally competitive and it significantly
boosts medium-term Lower taxes will help ICICI Bank, IndusInd Bank, HDFC Bank,
and L&T, the brokerage firm added
Morgan Stanley raised its earnings growth estimates
for the BSE Sensex to 25% in F2020 and 23% in F2021 and raised its BSE Sensex
target to 45,000 by June 2020.
According to Jefferies India, tax cut could boost
earnings growth for our coverage universe by ~0-14%, but we expect companies to
pass on some benefits to consumers in an attempt to revive weakening
consumption trends given a lower probability now of near-term demand stimulus.
Jefferies expect Asian Paints, Avenue Supermart,
Jubilant Foodworks, Nestle, United Spirit, Britania, ITC and Colgate to be the
biggest beneficiaries.
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